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Katarina [22]
3 years ago
5

Borasco Corp. owns land with a fair market value of $200,000. Borasco purchased the land 10 years ago for $65,000 and owes a lia

bility of $50,000 as of August 2 of the current year. Alvo Corp. owns 100% of Borasco. Borasco is completely liquidated on August 2 of the current year, according to a plan adopted on June 18 of the current year. As a result, the land is transferred to Alvo in complete cancellation of Borasco's stock. What basis does Alvo have in the land it receives?
Business
1 answer:
sleet_krkn [62]3 years ago
5 0

Answer:

$65,000

Explanation:

Borasco was the person who purchased the land for $65,000 in which the land was later transferred to Alvo. Therefore no gain or loss is been recognized in this liquidation because it subsidiary is been liquidated by the parent which is why the basis of land is said to be carryover basis of $65,000 at the end of the transaction.

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According to the quantity theory of money, the quantity of money is related negatively to the nominal interest rate:
galben [10]

Answer:

d. positively to the nominal gross domestic product

Explanation:

The quantity theory of money :

M = (P x Y ) / V

Where m = quantity of money

P × Y = nominal GDP

V = velocity

Velocity is assumed to be constant in the short run. It is also believed that Y is constant in the short run. Therefore, movement in price level is determined by the quantity of money.

I hope my answer helps you.

3 0
3 years ago
Before introducing the new software, Star Software Inc., conducted benchmark activities to assess how popular the product would
barxatty [35]

Answer: C. Access the current reality

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3 0
3 years ago
Compared to rail transportation, one of the advantages of shipping by truck is that trucks
ruslelena [56]

Compared to rail transportation, one of the advantages of shipping by truck is that trucks "Can reach more destinations".

<h3>What is rail transportation and road transportation?</h3>
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The advantages of raid transport over rail transport are-

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  • In hilly and undulating terrain, roads may be built with ease.
  • Highways connect railway stations, airports, and seaports, acting as a feeder to other forms of transportation.
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To know more about benefit of road transportation, here

brainly.com/question/21105347

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5 0
1 year ago
Western Wholesale Foods incurs the following expenditures during the current fiscal year. How should Wesernaunt for each of thes
levacccp [35]

Answer and Explanation:

The classification is as follows

1.  Since it is a salary for the repair technicians so it would be an expense that is incurred

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3, Since there is an annual maintenance cost, so it would be an expense that is incurred

4. The improvement of the line of production should be capitalized and depreciated over their useful life of an asset

5. Addition of a sprinkler system  should be capitalized and depreciated over their useful life of an asset

8 0
3 years ago
M Corporation has provided the following data concerning an investment project that it is considering: Initial investment$220,00
weeeeeb [17]

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$197,923.86

Explanation:

5 0
2 years ago
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